The proposed third plant will have an annual production capacity of 2.5 lakh units, the SMC Chairman Osamu Suzuki said while addressing the annual general meeting of the MSI. With this plant total output from MSI will be at 1.75 million units, he added.
However, Suzuki did not give any indication about the time frame for the operation of the third plant. He said due to production constraints MSI had been unable to meet demand properly, which is why SMC proposes to set up third plant for the MSI, he said.
“Some of our models, we have not been able to properly supply, as we have lot of production issues. We have not estimated the demand for cars at which it has grown,” Suzuki added. Maruti has a strong following among the country’s growing middle class. Though Maruti is already producing at full capacity it still has long waiting lists for some of its popular models.
Currently, MSI, in which the SMC has a majority stake of 54.2 per cent, has a total annual total output of 1.2 million units per year.
MSI has one mother plant with three production lines in Gurgaon while it has set up a second plant at Manesar with an investment of Rs 1700 crore. The second plant will have an annual capacity of 3 lakh cars.
Addressing the shareholders, Suzuki indicated that the second plant would be ready by January 2012. Suzuki also indicated that the MSI would also modernise its mother plant at Gurgaon.